Right wing papers have reported a "record" gap between public and private sector earnings. But this includes nationalised banks - the gap shrinks without them.
A range of right wing commentators and newspapers have been keen to highlight that yesterday’s labour market statistics identified a “record” gap between public and private sector earnings.
The Telegraph tells us that:
“This is the first time that the gap, which has slowly widened under the Labour Government, has hit more than £2,000 … this gap of 3.6 percentage points is the widest ever recorded by the ONS.”
And that:
“Nurses, teachers, civil servants and other public workers [were] enjoying an average annual pay rise of 3.8 per cent in the three months to the end of November.”
However, this refers to public sector earnings including financial services (i.e. nationalised banks). When you look at the public sector earnings excluding financial services the gap shrinks to 2.7 percentage points. Over a quarter of the rise that is being reported is a result of rising earnings for bankers.
This is still an earnings gap between the sectors, but not an historic one. As has been regularly highlighted the earnings differential can be accounted for by the composition of the workforce (there are more professionals in the public sector), the fact that the lowest paid workers get paid more in public sector jobs and the diverse performance of earnings in the private sector (for example earnings in distribution, hotels and restaurants rose by 1.8 per cent on the year, and in manufacturing by 1.9 per cent). Ben Goldacre has more on some of the other problems in these kinds of comparisons. At the very least, those who seek to criticise the public sector should get their facts right.
Our guest writer is Nicola Smith, Senior Policy Officer on economic and social affairs at the TUC.
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22 Responses to “More misreporting on public sector pay”
Joe
Funny, this thread, like the last on a similar subject ( https://www.leftfootforward.org/2010/01/politics-summary-thursday-january-21st/#comments ) becomes yet another amateur economics lesson for a right wing poster clearly just trying to get a reaction.
Anon E Mouse
Jesus Wept – Agreed on the editors and one can argue that papers like The Sun only really follow the polls and public opinion – I agree that it wasn’t “The Sun Wot Won It” but the damage that these papers can do should not be underestimated.
If McKenzie’s Kinnock in the lightbulb was bad for the Labour Party then the stuff they’ll throw at Brown will be even worse and I actually do believe that things like that do affect people on the day of an election. I can remember being in a canteen with people laughing at the lightbulb headline.
Also I would point out that the left is in decline in newspapers – look at the Mirror / Guardian sales and I also believe that if the views Nicola describes were not popular they would not be printed. It’s like this climate change nonsense; people could be forgiven for believing it was accepted by a majority of the public and yet we know from polls that it is not.
User 1879 – Remind me again where the Public Sector makes a profit for the country. I agree one could argue the NHS for example purchases items from the Private Sector but other than that I cannot see where the Public Sector makes a profit – surely that’s not their remit is it?
BenM
@Anon E Mouse
Also I would point out that the left is in decline in newspapers – look at the Mirror / Guardian sales
All newspapers are in decline – including traditionally Tory supporting ones.
It’s like this climate change nonsense; people could be forgiven for believing it was accepted by a majority of the public and yet we know from polls that it is not.
Thankfully most of the polls show that a plurality understand what drives Global Warming. Your self-indlugent denial of the science is way in the minority.
The thing is the private sector produces the monies that pay for the public sector.
Like most conservatives, your understanding of economics is minimal.
Try to remember that companies like Boeing, Lockheed Martin, Airbus, Quiniteq, BAE Systems etc would not exist without government spending.
user2010
Not only is average public sector pay higher that that in the tax paying private sector but conditions of work ( sick pay, working hours, work discipline) are slacker, job security is way greater and pensions exist. In short why should any young person chose a career in the private sector producing a tradeable product or service when they can work for the state?
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